Maharashtra to revoke cab aggregators’ permits if revised fares not implemented

The decision was taken after a group of aggregator cab drivers demanded the suspension of the companies for not complying with the state government’s directives.

Mumbai: The Maharashtra government will cancel the provisional permits granted to Uber, Ola, and Rapido if the ride-hailing companies fail to implement the revised fares approved by the government. The state transport commissioner, Vivek Bhimanwar, confirmed this to Hindustan Times on Wednesday, two days after driver unions of the app-based cab aggregators demanded the suspension of the companies for not complying with the state government’s directives.

Mumbai, India - May 28, 2023: ola uber cabs are parked on the road side at Wadala in Mumbai, India, on Sunday, May 28, 2023. (Photo by Satish Bate/ Hindustan Times) (Hindustan Times)

The decision was taken after a group of aggregator cab drivers visited the transport commissioner’s office in Churchgate on Wednesday and submitted a letter urging the state government to take action against these operators. The driver unions had earlier announced the implementation of the Cool Cabs per-kilometre fare of ₹22.72 for app-based aggregator taxis, while proposing their own base fares: ₹28 for basic hatchbacks, ₹31 for sedans, and ₹34 for premium cars.

“We have come up with the notification for fares for the benefit of people and aggregator cab drivers. However, if the aggregator operators do not implement it, we will certainly take action to the extent of revoking the provisional licence issued to them for operating app-based cabs,” said Bhimanwar.

Despite the state government’s notification issued on September 16, the aggregators have not made the necessary changes in their apps. In the past two days, the fares charged to passengers have been arbitrary, as Uber, Ola, and Rapido have not yet updated their apps to reflect the revised fares.

The Indian Gig Workers Forum has urged drivers to charge fares at the government-specified rates. When Hindustan Times spoke with some drivers who met with transport department officials, they said they were receiving mixed responses from passengers.

“Some passengers agree to pay as per RTO (regional transport office) rates, while others prefer to stick to the fares displayed on the mobile app. This discrepancy has led to arguments between passengers and drivers. To prevent escalation, they are charging the amount displayed on the app,” said Sudhir Patil, an app-based cab driver.

Government officials said a comprehensive policy for app-based transport services is being finalised. Once completed, fares for app-based vehicles will be determined based on the cost of the car. Some flexibility will also be allowed for surge and non-surge periods, the officials added.

As per the new rules, aggregators will be allowed to raise fares by up to 1.5 times during peak demand, instead of charging ₹40-45 per km like earlier. During off-peak hours, the platforms can offer discounts up to 25%, but cannot slash rates to ₹6-8 per km. Drivers must receive 80% of the fare amount, with companies retaining the remaining 20%, whereas earlier driver unions claimed companies took up to 35%.